International Differences in GDP And The Quality of Life

Prepared By:Rahul Paneliya

Akash NakraniNimesh Dhruv

Bakul GumasanaHitesh Viroja

Submitted To:Ms. Rupal Bhatt

Overview

 What is GDP ?

Formula of GDP

What is Quality of life ?

Case Study

Analysis

What is GDP…?

• “GDP is the market value of all final goods and services produced within a country in a given period of time.”

• GDP is equal to the sum of the value added at every stage of production (the intermediate stages) by all the industries within a country, plus taxes less subsidies on products, in the period

Formula of GDP

GDP = C + I + G + NX• Where : C : Consumption I : Investment G : Government spending NX : Net Exports (Export - Import)

Quality of Life

• The term quality of life is used to evaluate the general well-being of individuals and societies.

• Quality of Life is the product of the interplay among social, health, economic and environmental conditions which affect human and social development.

Case Study • Rich and poor countries have vastly different levels of GDP

per person. If the large GDP leads to higher standard of living, than we should observe GDP to be strongly correlated with various measures of life.

• Measures of the quality of life… Real GDP per person Life Expectancy  Adult Literacy  Internet Usage

GDP and Quality of LifeCountry Real GDP per

Person (2009)Life Expectancy

Adult Literacy (% )

Internet Usage (%)

United State 45,934 78 99 77.3

Germany 34,388 79 99 79.1

Japan 32,554 83 99 78.2

Mexico 13,609 76 97.9 27.2

Russia 14,913 66 99.5 42.8

Brazil 10,499 72 90 37.8

China 6,778 73 93.3 31.6

Indonesia 4,151 71 92 12.3

India 3,015 65 66 6.9

Pakistan 2,683 64 54.2 11.1

Nigeria 2,274 47 72 28.9

Bangladesh 1,487 60 53.5 0.3

Analysis

The twelve of the world’s most populous countries ranked in order of GDP per person. In reach countries, such as United Nations, Germany and Japan, people are expected to live more than 80 years of life, almost all can read and right and almost more than 75% of people uses the internet In poor countries, such as Pakistan, Nigeria, Bangladesh, People are expected to live only around 60years,

Analysis

• Only half of the population is literate and internet uses is very less.

Countries with low GDP per person tends to have more

– infant with low birth weight, – higher rates of infant mortality, – higher rates of maternal mortality,– higher rates of child malnutrition,– and less common access to safe drinking water.

Analysis

This countries also tend to have fewer– Television

– Telephones– Paved roads– Households with electricity 

International data leaves no doubt that a nation’s GDP is closely associated with its citizens’ standard of Living.